Domestic, foreign investors participation on equities market drop by 30.01%
By Kayode Tokede
Total domestic and foreign transactions on the equities market of Nigerian Exchange Limited (NGX) dropped by 30.01 per cent from N228.49billion in March 2021 to N159.93billion in April 2021.
This is according to NXG “Domestic and Foreign Portfolio Participation in Equity Trading” report for April 2021.
According to the report, “As at 30 April 2021, total transactions at the nation’s bourse decreased by 30.01 per cent from N228.49billion (about $560.55million) in March 2021 5 to N159.93billion (about $389.84million) in April 20216.
“The performance of the current month when compared to the performance in April 2020 (N128.67billion), revealed that total transactions increased by 24.29 per cent.
“In April 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 64 per cent.
A further analysis of the total transactions executed between the current and prior month (March 2021) revealed that total domestic transactions decreased by 29.78 per cent from N187.85billion in March to N131.91billion in April 2021.
“Similarly, total foreign transactions decreased by 31.05 per cent from N40.64billion (about $99.70million) to N28.02billion (about $68.31million) between March 2021 and April 2021.
Institutional Investors outperformed Retail Investors by 44 per cent. A comparison of domestic transactions in the current and prior month (March 2021) revealed that retail transactions decreased by 66.37 per cent from N108.55billion in March 2021 to N36.50billion in April 2021.
“However, the institutional composition of the domestic market increased by 20.32 per cent from N79.30billion in March 2021 to N95.41billion in April 2021.”
According to the report, over a 14 year period, domestic transactions decreased by 59.54 per cent from N3.556trillion in 2007 to N1.439trillion in 2020 whilst foreign transactions increased by 18.45 per cent from N616billion to N729billion over the same period.
The report added that, “Total domestic transactions accounted for about 74 per cent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26 per cent of the total transactions in the same period.
“The transaction data for 2021 shows that total foreign transactions stand at circa N178.25billion, whilst total domestic transactions are circa N658.21billion.”
